The February issue of the IAIS newsletter highlights that the global insurance sector plays a cornerstone role in the management of climate-related risks and opportunities for individuals, households, firms, other financial institutions, and public authorities. There is an increasing consensus across the financial sector that the potential systemic impact of climate change requires a similarly systemic global response, exemplified by work at the international level by the G20 and FSB. A growing number of insurance supervisors are examining the relevance of climate risks for insurance supervision, both individually and collaboratively through the Sustainable Insurance Forum (SIF).
The newsletter notes that IAIS is collaborating with SIF to develop an issues paper on climate-related financial disclosures for the insurance sector. This topic aims to open the dialog between insurance regulators, regulated firms, and other stakeholders around awareness of climate-related disclosures, use of scenarios and metric,s and support of the development of best practices to be considered by insurers in their financial disclosures. The newsletter further highlights that IAIS hosted an Insurance Capital Standard (ICS) stakeholder event on February 01, which gave members and stakeholders another opportunity to provide feedback on the ICS prior to the finalization of ICS Version 2.0 for the monitoring period.
Additional key updates for this month are as follows:
- The Capital, Solvency and Field Testing Working Group (CSFWG) met in Basel from January 28-31 to finalize its recommendations on 2019 Field Testing of ICS Version 2.0. These recommendations will go to the Policy Development Committee and the Executive Committee for endorsement at their meetings in late February.
- At its meeting on February 5-6, the Governance Working Group discussed the 2018 public consultation comments on ComFrame material in Insurance Core Principle (ICP) 5 on suitability of persons, ICP 7 on corporate governance, and ICP 8 on risk management.
- At its meeting on February 13-14, the Working Group discussed 2018 public consultation comments on ComFrame material in ICP 9 on supervisory review and reporting; ICP 10 on preventive measures, corrective measures, and sanctions; ICP 23 on group-wide supervision; and ICP 25 on supervisory cooperation and coordination.
- The Resolution Working Group met on January 23-24, with key items on agenda including a discussion of outcomes of the July 2018 draft ComFrame consultation and the November 2018 consultation on a draft application paper on recovery planning.
- The Supervisory Material Review Task Force met on February 7-8 and discussed the resolution of comments from the consultation on the draft introduction to ICPs and ComFrame.
Keywords: International, Insurance, Newsletter, Comframe, ICP, Climate Related Risks, IAIS
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ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.